Most plan members want employers to lead on retirement planning

Three in four defined contribution plan members would hand their retirement planning to a professional and never think about it again – if they could.

That is one of the central findings of J.P. Morgan Asset Management’s 2026 Defined Contribution Plan Participant Survey, which covered 1,716 defined contribution plan members in the United States in January 2026. The figure – 73 percent – is up from 55 percent when the firm first asked the same question a decade ago.

The survey covers US 401(k) participants, but the picture is familiar to Canadian plan sponsors. A December 2024 survey by the Financial Services Regulatory Authority of Ontario found eight in ten employees had not fully developed a retirement plan. Another 66 percent had not calculated how much they would need in retirement. Half could not recall the last time they spoke to anyone about saving.

A generational divide plan sponsors cannot afford to ignore

The demand for retirement planning support is most pronounced among workers now entering the workforce. Gen Z respondents were nearly 60 percent more likely than Baby Boomers to expect employers to weigh in on contribution levels (81 percent vs. 51 percent).

On investment selection, 70 percent of Gen Z believe employers should help choose plan investments, compared with 35 percent of Boomers. And 86 percent of Gen Z said employers bear responsibility for helping employees save, versus 61 percent of Boomers.

As younger cohorts grow as a share of the workforce, plan design built for older generations may no longer be adequate. Canadian sponsors examining how defined contribution plan redesign can improve member outcomes will find the generational data here directly relevant.

Members know they are falling short

Fifty-nine percent of participants believe they should be contributing more to their plans. Among retirees, 63 percent wish they had contributed more when they had the chance.

Financial pressure is the main barrier. Thirty-five percent cite a high cost of living as the top reason for not saving more. Another 29 percent point to credit card debt and 29 percent to unexpected expenses. One in ten has reduced or stopped contributions because of higher prices.

Plan leakage compounds the problem. More than one in four – 27 percent – has taken a loan or early withdrawal, and an additional 19 percent plan to do so. The primary reason, cited by 30 percent, is covering unexpected expenses.

Automatic features work – and members want more of them

Among participants who were automatically enrolled, 96 percent reported being satisfied. Among those with automatic contribution escalation, satisfaction reached 97 percent. Ninety percent view target date fund access favourably. And 63 percent support periodic re-enrolments into an age-appropriate mix, with the option to opt out.

Plan sponsors grappling with CAPSA governance and member engagement gaps will find direct parallels in these numbers.

The income gap is next

Beyond accumulation, 76 percent of participants are concerned about creating an income stream that will last through retirement. Ninety-one percent say they would take up an in-plan guaranteed monthly income option.

Only 35 percent believe Social Security alone will cover their retirement expenses. This number falls to 24 percent among Baby Boomers. In Canada, CPP adequacy and decumulation design are active governance questions for defined contribution plan sponsors.

Steve Rubino is head of retirement at J.P. Morgan Asset Management. In the report, he noted: “Today’s workforce continues to look for more help from employers to understand and navigate their retirement benefits.”

Eighty-five percent of respondents said retirement benefits factor into their job decisions. For plan sponsors, that number makes the case for treating retirement planning support as a strategic priority, going beyond a benefits administration function.